There are many big companies in the world who manage a lot of money.
When individuals and institutions invest money, it often happens with the help of an asset management company that can take control of these investments and make money for all parties, provided the markets work together.
An asset management company is involved in the investment and management of investment funds and other securities portfolios. In short, these companies draw the capital of individuals or institutions and use it for them. Some asset management companies target very high net worth individuals who hand over full control over their investments to the portfolio managers.
Many asset managers will only work with large institutions such as other corporations, large nonprofit organizations or associations. However, many of the best known companies offer services to average investors. In many cases, asset management companies earn money by charging fees based on the number of assets they manage, though some charge flat fees.
These companies often have business lines other than asset management, including brokerage services. In some cases, asset management accounts for only a fraction of the company’s revenue. This means that they often cooperate with each other in different ways, even though they are competitors.
For example, an asset management firm may use its online brokerage platform to allow investors to buy and sell the mutual funds of a competing company.
10 largest investment management companies
Here you can see the top asset management companies by number of funds they control. Some of these companies are considered the largest financial institutions in the world.
Please note that in some companies “custody” assets are much higher. This would also include money that is still managed by customers themselves.
All numbers represent the latest available AUM numbers and exchange rates for August 2018.
AUM: $ 6.3 trillion
BlackRock is not only the largest asset manager in the world, but also one of the largest financial institutions in the world. The company was founded in 1988 and went public in 1999. The company has been driving the growth of Exchange Traded Funds (ETFs) with its iShares products. Ishares now accounts for more than a quarter of BlackRock’s assets under management.
The Vanguard Group
AUM: 5.1 trillion US dollars
Vanguard has become synonymous with the passive investment strategy of investing money in mutual funds that reflect the activity of certain indices or the broader stock market. Vanguard offers low cost ratios for most of its funds. In addition to asset management, Vanguard offers brokerage services, financial planning, pensions and other services.
AUM: $ 3.36 trillion
“Chuck” is a leading discount broker with nearly 11 million active brokerage accounts. With its online platform and low commissions, the company has played an important role in helping people make their investments easier.
AUM: $ 2.78 trillion
Most people think of J.P. Morgan Chase as an investment bank, but has a robust asset management business and received assets under BlackRock in a new custody agreement last year.
State Street Global Advisor
AUM: $ 2.7 trillion
Boston-based State Street is the subsidiary of State Street Corporation. It manages investments for a wide range of institutional clients, including nonprofit organizations, local governments, associations and even education groups.
AUM: $ 2.5 trillion
Fidelity is an asset manager and discount broker with more than 27 million clients. It provides an online platform for individual investors to buy and sell securities and also manages the entire portfolios for clients. In the summer of 2018, she made headlines by offering mutual funds with a zero cost ratio and a minimum investment requirement.
AUM: $ 2.2 trillion
The German company is primarily an insurer, but operates two asset management businesses: Allianz Global Advisors and PIMCO. PIMCO alone manages more than $ 1.6 trillion.
AUM: $ 1.8 trillion
The history of this company dates back to its founder Alexander Hamilton. Maybe you have heard of him. More than 230 years later, BNY Mellon manages individual investments and investments in